Under an emergency plan, the UK will cut gas supplies to Europe if Russia’s energy crisis worsens.
According to the Financial Times, one of the first measures in the plan would be to shut down the interconnector pipelines linking Belgium and the Netherlands. National Grid could also be involved if supplies drop further, according to the Financial Times.
However, European gas companies warned that such a move would weaken international cooperation against Putin’s aggression and worsen the energy crisis in Europe.
The emergency plan would include the supply cut-off as part of a four-stage plan. This could include gas rationing for large industrial users, and encouraging households to reduce their consumption.
After Russia cut gas supplies to Europe, fears of shortages have been raised by Germany and the Netherlands.
Morgan Stanley has revised its forecasts to foresee a recession within the eurozone in quarter four of this year. This is due to the effect of lower gas flows from Russia and stubbornly high inflation.
The UK appoints ‘winter resilience’ czar
The UK Government stated that it is “fully confident” in the safety of the energy supply going into winter. It also said that a gas crisis was unlikely.
To ensure that Britain is able to keep the lights on during the deepening energy crisis, the Government has appointed a new official.
Jonathan Mills was previously a director for energy strategy in government and took on the role of director-general of winter resilience earlier in the month.
According to the Department for Business, Energy and Industrial Strategy, energy security is an “absolute priority”.
Officials in the UK are preparing emergency plans to address a power shortage this winter. They warn that 6 million British households could be affected by power outages in the worst-case scenario if Russia shuts off their water supply.
As supply problems get worse, gas prices rise
This morning, natural gas prices rose across Europe amid concerns that the supply crisis could worsen in the lead-up to winter.
With lower Russian flows, European countries are racing for storage site replenishment. There are concerns that Putin might shut off all water supply.
The UK plans to shut down interconnector gas pipelines from Europe as part of its emergency plans. This could further exacerbate the crisis in Europe.
The rising demand for liquefied natural gases in Asia could lead to increased competition, which could pose a new threat to supplies and drive up prices.
Benchmark European gas prices rose 1.8pc.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned